WHEN all privately-run telecommunication ventures are profiteering in the competitive business climate, the government- owned and funded mobile operator Teletalk is dying due to escalation of losses over the past fiscal years. The news of the ailment of Teletalk has been confirmed by the State Minister for Telecom Tarana Halim, an actress-turned-politician, while she was briefing the newsmen.
The telecommunications operation in the country was mostly run by multinational conglomerates, then the government in 2005 intercepted the market by Teletalk, but the venture was never popular among the consumers for inept management and wrong market policy. Under the leadership of the incumbent State Minister, the public limited company become too sick. It is now crying for capitalisation to breath in.
Till date, the company has invested Tk 3,000 crore in operations and has made a net loss of around Tk 4000 crore. Experts said that Teletalk has failed purely because it is owned by the government and the bureaucrats making up the board of directors and other government officials holding all the top positions who have no degree and experience to deal in telecommunication business. Moreover, ineptness, corruption and nepotism dominate the show there.
Teletalk’s first mistake came soon after it launched its first mobile packages in 2005 when it began operations without first doing a proper market survey. At the time, it had projected sales estimates of 2.5 million SIMs. The reality was quite opposite. They ended with a number of subscribers closer to 0.5 million. Despite comparative edge that Teletalk enjoys over all other telecommunication companies, it failed to take advantage of its situation in its favour.
The state-owned operator’s revenue earnings are fast shrinking as customers complain of poor service. In fiscal 2016-17, Teletalk’s revenue shrunk about 28 percent year-on-year basis to Tk 710 crore – the lowest in three years. It also lost about 12.3 lakh active connections, which is 27.72 percent of its subscribers.
Lack of efficient management, proper marketing plan, investment, and a strong network, as well as endless bureaucratic red-tape, have resulted in making Teletalk a burden. Corruption is at the root of its dismal failure. It is now a total national wastage.
To establish 1,200 stations capable of providing 3G and 4G services, the company needs Tk 610 crore. Moreover, it has huge unpaid dues of Tk 2000 crore to the Bangladesh Telecommunication Regulator Commission. The state-run operator is in dire straits.
In our view, in these days of market economy, it is simply useless to keep this ailing state-owned business entity alive under life-support through public funding. Let it get lost – once and for all.
The telecommunications operation in the country was mostly run by multinational conglomerates, then the government in 2005 intercepted the market by Teletalk, but the venture was never popular among the consumers for inept management and wrong market policy. Under the leadership of the incumbent State Minister, the public limited company become too sick. It is now crying for capitalisation to breath in.
Till date, the company has invested Tk 3,000 crore in operations and has made a net loss of around Tk 4000 crore. Experts said that Teletalk has failed purely because it is owned by the government and the bureaucrats making up the board of directors and other government officials holding all the top positions who have no degree and experience to deal in telecommunication business. Moreover, ineptness, corruption and nepotism dominate the show there.
Teletalk’s first mistake came soon after it launched its first mobile packages in 2005 when it began operations without first doing a proper market survey. At the time, it had projected sales estimates of 2.5 million SIMs. The reality was quite opposite. They ended with a number of subscribers closer to 0.5 million. Despite comparative edge that Teletalk enjoys over all other telecommunication companies, it failed to take advantage of its situation in its favour.
The state-owned operator’s revenue earnings are fast shrinking as customers complain of poor service. In fiscal 2016-17, Teletalk’s revenue shrunk about 28 percent year-on-year basis to Tk 710 crore – the lowest in three years. It also lost about 12.3 lakh active connections, which is 27.72 percent of its subscribers.
Lack of efficient management, proper marketing plan, investment, and a strong network, as well as endless bureaucratic red-tape, have resulted in making Teletalk a burden. Corruption is at the root of its dismal failure. It is now a total national wastage.
To establish 1,200 stations capable of providing 3G and 4G services, the company needs Tk 610 crore. Moreover, it has huge unpaid dues of Tk 2000 crore to the Bangladesh Telecommunication Regulator Commission. The state-run operator is in dire straits.
In our view, in these days of market economy, it is simply useless to keep this ailing state-owned business entity alive under life-support through public funding. Let it get lost – once and for all.
